OREANDA-NEWS. According to Alexei Gurin, CEO of Russia's largest passenger car tyre producer, Russia should "redefine diversification" and focus on just three non-energy sectors in which it can become a quality leader by 2017, reported the press-centre of Amtel-Vredestein. Speaking at the 10th Annual Russian Economic Forum in London, Amtel-Vredestein CEO Alexei Gurin pointed to Russia's poor quality image as a major stumbling block to diversification. He called for President Putin to redefine diversification and to identify and support three industries outside the energy sector in which Russia could become a quality leader by 2017.

"We simply do not have the time or resources to support many industries at the level required to take a leadership role like we do in the energy sector. But by narrowing our focus and providing additional support to just three (or two, or one), we can hope to achieve greatness," said Gurin. "Essentially I'm suggesting we do with other industries what we have done by default with oil and gas. We can all agree that continued government support of energy and raw materials sectors is necessary, but it can hardly be called diversification", said Gurin. "In fact one could argue that Russia is becoming less diversified as the energy sector and our dependence upon it grows".


Gurin believes that Russia can rapidly accelerate this change by focusing on several "Industries with Promise". This could be established with a three-step process: select the most promising industries or industry clusters, develop sensible criteria for funding the growth and advancement of businesses within these industries, and fund a Government-sponsored program to promote "Made in Russia" products domestically and internationally. Gurin suggested that there may be numerous industries with promise, from which the government should chose three for special support, including: Automotive, Aviation, Biotechnology, Chemistry, Food Products, Software, even Tourism. Gurin also noted during his speech: "Government backed investment vehicles like the Stabilization and Venture Funds hold promise, but are mired in red tape and obstacles that make them impractical to all but the largest of businesses".


"Taxation needs a quick, bold solution…not just more dialogue. High taxes and VAT make it much more expensive for companies like Amtel-Vredestein to invest in technology and equipment that we can bring back to Russia to produce better quality goods for the domestic markets and export — even while our international competitors are given tax holidays and incentives to compete against us." explained Gurin.

Amtel-Vredestein began manufacturing Vredestein tyres at its Kirov factory in 2006 for export to Europe. "We shipped 335,000 tyres last year. This year we plan to more than double that number. This is in addition to 500,000 Amtel tyres we export to other CIS countries". Gurin believes that Russia needs to stop one-track orientation to oil or raw materials export economy and to develop other industries, to select several industries, or industry clusters with high export potential and domestic competitiveness which can act as"ambassadors" of "Made in Russia" products and to improve taxation, customs and industrial policies of Russian government for those who invest in the quality, premium, competitive and "exportable" Russian goods.

"I can envision a day when products „Made in Russia“ will inspire admiration rather than ridicule," said Gurin. Amtel-Vredestein N.V. is a leading European tyre producer and Russian number one passenger tyre manufacturer. The Company sells passenger car tyres under the VREDESTEIN, AMTEL and MALOYA brands manufactured at its facilities in Enschede, Netherlands; Kirov, Moscow and Voronezh, Russia. The company's AV-TO subsidiary is Russia's number one automotive retailer and the leading tyre and auto parts distributor.